The global dairy industry is dynamic and milk prices unpredictable. Smart dairy companies insulate their business by creating added value through innovation. Both protein and fermentation are booming in appeal to consumers and according to the headlines “fat is back”. Dairy consumer goods are well-positioned to capitalise on these drivers toward products with a clean and healthy appeal. At the same time, a strong market segment for ultimate indulgence is growing in chilled dairy. The winners will be dairy companies with strong brands in health and indulgence. Price pressure on commodity milk will drive further innovation in the dairy ingredient sector as companies chase the high-margin product groups.
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